Analysis: Bitcoin may face correction pressure, market sentiment cautious ahead of CPI release

Odaily Odaily reports Market analysis indicates that with the US April CPI data set to be released on May 12, Bitcoin may face greater correction pressure. The latest forecast from the Cleveland Fed suggests that the year-over-year US headline CPI for April could rise to 3.56%, up from 3.3% in March, potentially reinforcing market expectations that the Fed will find it difficult to cut interest rates in the near term, thereby putting pressure on risk assets like Bitcoin.

Analysts note that while Bitcoin has remained strong following several previous instances of higher-than-expected inflation data, the current market support has weakened compared to before. Particularly after Strategy paused its Bitcoin purchases, the institutional capacity to absorb new Bitcoin supply has declined, and the market's sensitivity to CPI data may increase again.

Technically, the daily chart for Bitcoin is forming a classic "rising wedge" pattern. If the price breaks below the key support level of around $84,000, it could further decline towards $70,000; conversely, if it successfully breaks through the resistance at the 200-day moving average, the upside could open up towards the $90,000 to $95,000 range. (Cointelegraph)